Priceline Stock Rises As JPMorgan Hikes Price Target

Priceline (PCLN) shares were up 2.3% in midday trading in the stock market Monday after JPMorgan hiked its price target on the stock by 25% to well over 1,000.

JPMorgan analyst Doug Anmuth said in an investor note early Monday that he expects strong Q2 results from Norwalk, Conn.-based Priceline on further market share gains. Priceline is set to report Q2 earnings Thursday after the market close.

"While competitive dynamics are driving increased sales and marketing spend across the (online travel agency) space, we are optimistic on Priceline's ability to drive higher bookings growth that offset margin pressures, and (as) expense (comparisons) turn more favorable in (the second half of 2013," Anmuth wrote.

The analyst also says that he's adjusting his estimates to include results from Kayak as of May 21. Priceline's acquisition of the travel metasearch website closed in Q2. In 2013, he's looking for Kayak to contribute $165 million to revenue and $33 million in EBITDA, earnings before interest, taxes, depreciation and amortization. In 2014, he forecasts $305 million in Kayak revenue and $58 million in EBITDA.

Anmuth reiterated his overweight rating on the stock, while raising the price target to 1,040 from 830.

Priceline is No. 28 in the latest IBD 50 ranking of top stocks , and was trading near 929 midday Monday. That makes it nearly 10% extended from the 847.43 buy point the stock hit early in July.

Several other investment houses have already raised their price target on Priceline to more than 1,000. Morgan Stanley raised its price target on the stock by 33% to 1,010 on July 8. It also upgraded the Web travel agency to overweight from equal weight, helping to propel the shares at the time to a new 14-year high.

Jefferies Equity Research raised its price target on Priceline shares to 1,005 from 860 on July 16.

Priceline (PCLN) shares were up 2.3% in midday trading in the stock market Monday after JPMorgan hiked its price target on the stock by 25% to well over 1,000.

JPMorgan analyst Doug Anmuth said in an investor note early Monday that he expects strong Q2 results from Norwalk, Conn.-based Priceline on further market share gains. Priceline is set to report Q2 earnings Thursday after the market close.

"While competitive dynamics are driving increased sales and marketing spend across the (online travel agency) space, we are optimistic on Priceline's ability to drive higher bookings growth that offset margin pressures, and (as) expense (comparisons) turn more favorable in (the second half of 2013," Anmuth wrote.

The analyst also says that he's adjusting his estimates to include results from Kayak as of May 21. Priceline's acquisition of the travel metasearch website closed in Q2. In 2013, he's looking for Kayak to contribute $165 million to revenue and $33 million in EBITDA, earnings before interest, taxes, depreciation and amortization. In 2014, he forecasts $305 million in Kayak revenue and $58 million in EBITDA.

Anmuth reiterated his overweight rating on the stock, while raising the price target to 1,040 from 830.

Priceline is No. 28 in the latest IBD 50 ranking of top stocks , and was trading near 929 midday Monday. That makes it nearly 10% extended from the 847.43 buy point the stock hit early in July.

Several other investment houses have already raised their price target on Priceline to more than 1,000. Morgan Stanley raised its price target on the stock by 33% to 1,010 on July 8. It also upgraded the Web travel agency to overweight from equal weight, helping to propel the shares at the time to a new 14-year high.

Jefferies Equity Research raised its price target on Priceline shares to 1,005 from 860 on July 16.

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